Apple PT Raised to $170, Buy On Any 3Q Weakness: Bernstein
Apple PT raised to $170 from $160 by Bernstein analyst Toni Sacconaghi (outperform) ahead of FY3Q earnings scheduled for Aug. 1, saying that investors should use any weakness after results to add to positions.
- Sees potential for “very weak” FY4Q guidance, with revenue guidance potentially $6b-$10b below Street expectations
- Bernstein ests. FY4Q revenue at $42.7b vs Bloomberg consensus est. of $49.4b and notes that many analysts haven’t yet lowered ests. to factor in a delay for iPhone 8 models
- Says weak guidance unlikely to matter unless iPhone 8 availability is pushed out past early November, in which case some customers may switch away from the iPhone
- Says weakness after results would be a buying opportunity, given large installed base for iPhone 8 cycle and attractive valuation
- Raises FY18 EPS est. to $10.79 to reflect an increase in iPhone ASPs and pushed out iPhone unit sales from 2H